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Switzerland · Where the line is

Professional crypto trading: are your gains still tax-free?

The tax exemption for private capital gains has a limit. Where it runs is set out in Circular 36, and the part most often misreported is what happens when you do not meet one of the five criteria.

Legal position as of 1 October 2026 · translated from German on 2 November 2026 · sources at the end

What this is about

In Switzerland, private capital gains on movable assets are tax-free (Art. 16(3) DBG), on bitcoin and other cryptocurrencies too. The exemption falls away if your trading counts as self-employment. The gains then become income, and AHV social security contributions come on top.

In Circular No. 36 the ESTV set five criteria. Whoever meets all five is treated as managing their private assets. The circular speaks of securities; the tax authorities apply the same criteria to cryptocurrencies by analogy.

The five criteria of the safe-harbour check

If you meet all five, the tax authorities assume private asset management, and so tax-free capital gains:

  1. Holding period of at least six months. The assets sold were held for at least half a year.
  2. Transaction volume at most five times. The sum of all purchase prices and sale proceeds per calendar year is no more than five times the holding at the start of the tax period.
  3. The gains are not needed to live on. The capital gains do not replace missing income. The ESTV generally assumes this when realised gains are less than 50 % of net income for the tax period.
  4. No borrowed money. The investments are not financed with borrowed money, or the taxable investment income from them exceeds the proportional interest.
  5. Derivatives only for hedging. Buying and selling derivatives is limited to hedging your own positions.

Two criteria hit crypto investors in particular

  • The transaction volume is exceeded sooner than you think. Every swap counts twice, as the sale of one asset and the purchase of the other. Starting the year with CHF 50 000, the CHF 250 000 limit is reached within weeks with active DeFi use.
  • Margin and perpetual trading fall under the derivatives criterion. Trading with leverage on an exchange is not using derivatives to hedge your own positions.

«Not met» does not mean «professional»

This is the point most accounts get wrong. The circular states: if the criteria are not all met, professional trading cannot be ruled out; the case is then assessed on all its circumstances.

So it is not a test you pass or fail. Once the safe harbour no longer applies, the assessment goes wider. The Federal Supreme Court puts the transaction volume and the use of borrowed money first; a systematic approach and specialist knowledge matter less by comparison.

The reverse holds too: there is no guarantee. The circular is an administrative instruction and does not bind the courts. Meeting all five criteria is a very good starting position, not an entitlement.

What changes if you count as professional

  • Gains become income subject to income tax.
  • AHV contributions are due. This is regularly forgotten, and often a bigger item than expected.
  • Losses become deductible, the one side in your favour.
  • Wealth tax stays. Your holding is declared on 31 December in every case, at the ESTV tax value.

Self-test for the last tax year

  1. Did you hold your positions for more than six months on average?
  2. Was your total trading volume less than five times your holding on 1 January?
  3. Were your realised gains below 50 % of your net income?
  4. Did you invest without a loan, margin or Lombard credit?
  5. Did you use derivatives only for hedging?

Five times yes: under the safe-harbour check your capital gains are tax-free.

At least one no: the safe harbour does not apply. That does not mean you trade professionally; it means your situation is assessed case by case. That is the moment a talk with your tax adviser pays off, before you file.

Frequently asked questions

Are crypto gains tax-free in Switzerland?
As a private capital gain, yes (Art. 16(3) DBG). Income from staking, mining and lending stays taxable, as does wealth tax on your holding on 31 December.
Does swapping bitcoin for ether count as a transaction?
Yes, twice: as the disposal of one position and the acquisition of the other. For the transaction-volume criterion that matters, because the limit comes twice as fast.
What happens if I do not meet one of the five criteria?
The safe-harbour check no longer applies, nothing more. The circular states that professional trading can then not be ruled out; the case is assessed on all its circumstances. It is not a test you pass or fail.
Does staking count as professional trading?
No. Staking rewards are investment income, taxable when received, whether you count as a private or a professional investor.
What changes if I count as a professional trader?
Gains become income subject to income tax, and AHV social security contributions are added. In return, losses become deductible. Wealth tax on your holding stays either way.

Sources

The first two documents are linked in German.

The overview of all three taxes: Crypto taxes in Switzerland